Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
ACA vs Medicare, Different Ages
Old 08-03-2022, 03:11 AM   #1
Confused about dryer sheets
 
Join Date: Nov 2018
Location: San Jose
Posts: 4
ACA vs Medicare, Different Ages

Hi, my wife is 3 years younger than I am, so I will be leaving the ACA system and moving to Medicare when I am 65, 3 years before her. For those 3 years how do I determine her MAGI to determine if she qualifies for any help paying for coverage?? Normally I file our taxes as MFJ, do I need to file separately for those 3 years??

I'm confused as to how to do this.

Brian
ScotsmanUS is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-03-2022, 04:26 AM   #2
Recycles dryer sheets
 
Join Date: Sep 2011
Posts: 56
Not a tax expert but I believe your wife will not be eligible for the ACA premium tax credits if she files "married filing separately" based on IRS rules. I'm in the same boat, on Medicare but wife will take another 3 years to qualify for medicare and is still on ACA for her heatlh insurance.

Maybe someone more kowlegeable can clarify this.
jesaco is offline   Reply With Quote
Old 08-03-2022, 05:28 AM   #3
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 653
From what I understand both incomes count
__________________
Went from EMS to PDN
Earn Money Sleeping/ Paid Doing Nothing
old medic is offline   Reply With Quote
Old 08-03-2022, 05:54 AM   #4
Recycles dryer sheets
 
Join Date: Oct 2018
Posts: 79
Unfortunately it is the MAGI for both people that will determine the size of your wife's subsidy. She will get a smaller subsidy because your income is the same, but only one person needs the insurance.
orchid55 is offline   Reply With Quote
Old 08-03-2022, 10:19 AM   #5
Recycles dryer sheets
boog's Avatar
 
Join Date: May 2014
Location: Ocala, FL
Posts: 108
Similar situation here. You must file MFJ to get subsidy for wife. Wife’s subsidy decreased such that her premium cost alone is now more than our combined premium cost was before I started Medicare. She starts Medicare in a bit over two years, at which time our combined premium costs will again be lower than now (hopefully).
boog is offline   Reply With Quote
Old 08-03-2022, 10:36 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Jan 2019
Location: Sunny California
Posts: 1,209
Following..
My friend fell into this issue as well when her husband moved to Medicare earlier this year. She told Covered California that she had no income so they approved her for Medi-Cal which she was pretty upset about so her husband withdrew money from his IRA account that somehow qualified as income for her and she's getting her ACA for free currently but I think at the end of the year this is going to be a mess. I'm guessing their joint tax return will show about 70K in income.
What should she have done so i can let her know if she needs to change something in regards to her income.
RetiredAndLovingIt is offline   Reply With Quote
Old 08-03-2022, 10:49 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 2,428
Quote:
Originally Posted by RetiredAndLovingIt View Post
Following..
My friend fell into this issue as well when her husband moved to Medicare earlier this year. She told Covered California that she had no income so they approved her for Medi-Cal which she was pretty upset about so her husband withdrew money from his IRA account that somehow qualified as income for her and she's getting her ACA for free currently but I think at the end of the year this is going to be a mess. I'm guessing their joint tax return will show about 70K in income.
What should she have done so i can let her know if she needs to change something in regards to her income.
If someone has zero monthly income they would qualify for Medicaid. Since we are in a public health emergency they would be locked in until the emergency is over.
jim584672 is offline   Reply With Quote
Old 08-03-2022, 11:12 AM   #8
Recycles dryer sheets
 
Join Date: Dec 2018
Location: To be determined
Posts: 103
My wife and I started the year on an ACA policy. They continued to try and put her on Medicaid due to her income. Multiple calls got that straightened out as it is our combined income. They kept looking only at her social security. Then further into the year she switched became eligible and switched to medicare and I continued on an ACA policy. To keep off Medicaid and to get the subsidies you need to have a MAGI above something like 138% of the poverty level for the number of people in the household. So if it’s you and your wife you use 2 people. You can go to your state or the federal exchange and put in different incomes to figure out your level of subsidies. Estimate your income for the year and then as we will be doing Roth conversions to keep our income above the Medicaid level and get the subsidies. That’s the basics. I’m sure others can give better specifics. It does take a little planning to keep you within the income range, but it’s worth the time.
djsander is offline   Reply With Quote
Old 08-03-2022, 11:34 AM   #9
Recycles dryer sheets
 
Join Date: Sep 2021
Posts: 60
Both you and your wife's income are accounted for ACA even for her alone after you are on Medicare. Plus if both of you on the same ACA plan before, she will be on a separate (new) ACA probably with less tax credit if both of you income stay the same. Also depending on who's the one sighed up originally with ACA, be careful with the transition day/method as this may require specific procedure to not mess up the remaining spouse' s ACA. The best way seems to seek a local experienced agent's help...
xlf11 is offline   Reply With Quote
Old 08-03-2022, 12:05 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Jan 2019
Location: Sunny California
Posts: 1,209
Quote:
Originally Posted by jim584672 View Post
If someone has zero monthly income they would qualify for Medicaid. Since we are in a public health emergency they would be locked in until the emergency is over.
She's married filing joint so they will have about $70K per year so she should not qualify for nor does she want to be on Medi-Cal. I'm worried at the end of the year that they will owe a bunch of money and maybe penalties because she's not paying anything for her ACA right now. I think they were paying $600 for both of them after subsidy when he was on ACA as well.
RetiredAndLovingIt is offline   Reply With Quote
Old 08-03-2022, 12:10 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 2,428
Quote:
Originally Posted by RetiredAndLovingIt View Post
She's married filing joint so they will have about $70K per year so she should not qualify for nor does she want to be on Medi-Cal. I'm worried at the end of the year that they will owe a bunch of money and maybe penalties because she's not paying anything for her ACA right now. I think they were paying $600 for both of them after subsidy when he was on ACA as well.
ACA is calendar year based while Medicaid is monthly based. It doesn't look at what you made in a year at all. I know a few people who made lots in the front of the year, had a low income month and are rightly placed in Medicaid even though they made way over if you count it by a year.
jim584672 is offline   Reply With Quote
Old 08-03-2022, 12:24 PM   #12
Recycles dryer sheets
 
Join Date: Sep 2021
Posts: 60
Quote:
Originally Posted by RetiredAndLovingIt View Post
She's married filing joint so they will have about $70K per year so she should not qualify for nor does she want to be on Medi-Cal. I'm worried at the end of the year that they will owe a bunch of money and maybe penalties because she's not paying anything for her ACA right now. I think they were paying $600 for both of them after subsidy when he was on ACA as well.

She should be fine with a $70k income on ACA for 2022 as the 400% FPL subsidy cliff was eliminated by ARP Act. So at worst, she will repay part of the subsidy with her portion of 8.5% of their income and there is no penalty for underestimate your income.
xlf11 is offline   Reply With Quote
Old 08-03-2022, 01:35 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 9,129
Quote:
Originally Posted by RetiredAndLovingIt View Post
Following..
My friend fell into this issue as well when her husband moved to Medicare earlier this year. She told Covered California that she had no income so they approved her for Medi-Cal which she was pretty upset about so her husband withdrew money from his IRA account that somehow qualified as income for her and she's getting her ACA for free currently but I think at the end of the year this is going to be a mess. I'm guessing their joint tax return will show about 70K in income.
What should she have done so i can let her know if she needs to change something in regards to her income.

It's too late for your friend but of other educate yourself about things before you need to make a switch.. as for your friend let her figure it out for herself, some times that's the only way people learn. because from what you wrote you don't a firm grasp on the rules either.
ivinsfan is offline   Reply With Quote
Old 08-03-2022, 01:36 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 9,129
Quote:
Originally Posted by jim584672 View Post
If someone has zero monthly income they would qualify for Medicaid. Since we are in a public health emergency they would be locked in until the emergency is over.



The problem was this person didn't have zero income.
ivinsfan is offline   Reply With Quote
Old 08-03-2022, 01:39 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 9,129
Quote:
Originally Posted by RetiredAndLovingIt View Post
She's married filing joint so they will have about $70K per year so she should not qualify for nor does she want to be on Medi-Cal. I'm worried at the end of the year that they will owe a bunch of money and maybe penalties because she's not paying anything for her ACA right now. I think they were paying $600 for both of them after subsidy when he was on ACA as well.

Just step away and let her worry about. The paragraph you just wrote makes no sense. On regular ACA for one person with 70K in income you won't get free insurance.
ivinsfan is offline   Reply With Quote
Old 08-03-2022, 02:19 PM   #16
Recycles dryer sheets
 
Join Date: Oct 2012
Location: Lexington
Posts: 85
As several already explained, both incomes count. We're in the same boat as OP with DW 3 years younger. Our tax credit was north of $17k for several years with $0 premium since the rules changed to stop federal end federal funding of cost sharing subsidies. Talk about unintended consequences.

But I just started Medicare this year. So the clock is now ticking. Only have 5 years to convert large sums to Roth before SS substantially reduces the amount that can be converted in the 22 bracket.

I think that's worth sacrificing DWs tax credit but not positive. Probably couldn't get the full credit anyway since we are about depleted of after tax funds.
kyzymurgist is offline   Reply With Quote
Old 08-03-2022, 04:52 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 15,855
Just to throw some more problems into the mix... if you have a child still on your plan...


When you throw in their income it makes a difference...


And it is household income that is used from what I understand...
Texas Proud is offline   Reply With Quote
Old 08-04-2022, 03:29 PM   #18
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 3,839
This thread opens a can of worms )

I start Medicare on 9/1/2022. Our ACA policy is in my name. DH starts Medicare on 12/1/2022. I was told I could end my portion of the ACA policy the 1st or 2nd week of Sept. and have it backdated to Sept. 1 to take me off and leave him on. We'll be out of cellphone range on Sept.1.

Does anyone know what his premium will be after I'm taken off? We MFJ, income ~$50K. Our current monthly premium is $8.95 on a Bronze HD plan. I keep hearing his premium will jump a lot.
__________________
"Do not go where the path may lead, go instead where there is no path and leave a trail."

Ralph Waldo Emerson
Rianne is offline   Reply With Quote
Old 08-04-2022, 03:46 PM   #19
Recycles dryer sheets
 
Join Date: Sep 2021
Posts: 60
Quote:
Originally Posted by Rianne View Post
This thread opens a can of worms )

I start Medicare on 9/1/2022. Our ACA policy is in my name. DH starts Medicare on 12/1/2022. I was told I could end my portion of the ACA policy the 1st or 2nd week of Sept. and have it backdated to Sept. 1 to take me off and leave him on. We'll be out of cellphone range on Sept.1.

Does anyone know what his premium will be after I'm taken off? We MFJ, income ~$50K. Our current monthly premium is $8.95 on a Bronze HD plan. I keep hearing his premium will jump a lot.

First of all, get a local agent who handles both ACA and Medicare if you are on your own. It costs you nothing and might help to get the best plans in your local area. We just went through the similar ACA/Medicare for two of us and everything was smooth...

As for ACA cost after you are on Medicare, it definitely will be more expensive than before for the same income and you can put your income on the ACA website to have an estimate. Be careful about the transition from your both to one on ACA as this will be a new plan with different plan # even everything stays the same so your spouse needs to setup again for payment etc. as if this is the first time on ACA.


Good luck!
xlf11 is offline   Reply With Quote
Old 08-04-2022, 10:47 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 9,129
Quote:
Originally Posted by Rianne View Post
This thread opens a can of worms )

I start Medicare on 9/1/2022. Our ACA policy is in my name. DH starts Medicare on 12/1/2022. I was told I could end my portion of the ACA policy the 1st or 2nd week of Sept. and have it backdated to Sept. 1 to take me off and leave him on. We'll be out of cellphone range on Sept.1.

Does anyone know what his premium will be after I'm taken off? We MFJ, income ~$50K. Our current monthly premium is $8.95 on a Bronze HD plan. I keep hearing his premium will jump a lot.

who told you this about ACA? A reliable source? Have you already signed up for a Medicare supplement? IMO you have all this sorted out already...it costs what it cost but the more important is making sure you both have the coverage you qualify for...
ivinsfan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What do you do about Minimum Retirement ages Required by Pensions?? militaryman Hi, I am... 13 12-31-2018 10:58 AM
Retirement planning when you and your spouse are different ages texasdiver Hi, I am... 16 08-20-2012 12:33 PM
Property Tax Rates: Different States, Different Strokes? Orchidflower FIRE and Money 39 10-28-2007 01:41 PM
Question for the Men of all ages. My Dream Other topics 46 10-24-2006 10:21 PM

» Quick Links

 
All times are GMT -6. The time now is 04:33 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.